Market News

November 25, 2016  Fri 8:02 AM CT

Investors are betting that Arista Networks will rally by early next year.

OptionMonster's tracking program detected the purchase of 2,000 January 95 calls for $4.90 to $5.10 on Wednesday. This represents fresh buying, as open interest in the strike was just 187 contracts before the session began.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

ANET rose 0.43 percent to $95.19 on Wednesday and is up 22 percent in the last three months. The cloud-networking company is expected to report earnings after the close on Feb. 16.

Overall option volume in ANET was twice its daily average on Wednesday. Calls outnumbered puts by a bullish 7-to-1 ratio.

News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »